About ULTRAPAR HOLDINGS INC
Ultrapar Participações S.A. engages in the gas distribution, fuel distribution, chemicals, storage, and drugstores businesses primarily in Brazil, Mexico, Uruguay, Venezuela, other Latin American countries, the United States, Canada, the Far East, Europe, and internationally. Its Gas Distribution segment distributes liquefied petroleum gas to residential, commercial, and industrial consumers primarily in the South, Southeast, and Northeast regions of Brazil. The company's Fuel Distribution segment distributes and markets gasoline, ethanol, diesel, fuel oil, kerosene, natural gas for vehicles, and lubricants; operates convenience stores; and offers lubricant-changing and automotive specialized services. Its Chemicals segment produces ethylene oxide and its derivatives, and fatty alcohols that are raw materials used in the home and personal care, agrochemical, paints, varnishes, and other industries.
The company's Storage segment operates liquid bulk terminals primarily in the Southeast and Northeast regions of Brazil. Its Drugstores segment trades in pharmaceutical, hygiene, and beauty products through its own drugstore chain in the North, Northeast, and Southeast regions of Brazil. As of December 31, 2020, the company operated through 7,107 Ipiranga service stations and 1,804 AmPm convenience stores; 1,172 Jet Oil franchises; 405 Extrafarma drugstores and 3 distribution centers; and 6 Ultracargo terminals with storage capacity of 838 thousand cubic meters. It also operates Abastece Aí, a digital payments app; and offers Km de Vantagens, a loyalty program. The company was founded in 1937 and is headquartered in São Paulo, Brazil.
UGP operates in the Transportation, Communications, Electric, Gas, And Sanitary Services | Utilities | headquartered in 9 ANDAR SAO PAULO, New York | approximately 9,920 employees | led by CEO Marcos M. Lutz.
Updated February 16, 2026
Our six-factor quantitative model, which ranks 7,333 publicly traded U.S. companies on quality, value, momentum, investment efficiency, financial stability, and short interest positioning, assigns ULTRAPAR HOLDINGS INC a Strong Buy rating with a composite score of 79/100 — placing it at rank #1 in the entire universe.
What makes this rating noteworthy is not any single exceptional factor, but the breadth of strength across the profile. ULTRAPAR HOLDINGS INC's dominant factor is value at 95/100, followed closely by quality at 90/100. Even the weakest factor, stability at 57/100, sits comfortably above average.
At $2.8 billion, ULTRAPAR HOLDINGS INC operates in the Transportation, Communications, Electric, Gas, And Sanitary Services sector where it ranks 1st out of 50 stocks — the 98th percentile among its peers. A dividend yield of 4.9% adds an income component to the total return thesis.
Six-Factor Scorecard
Our model evaluates every U.S. stock across six independently measured dimensions. Each score represents a percentile rank — a score of 80 means the stock ranks higher than 80 percent of all companies on that factor.
Key Financial Metrics
Quality Analysis
ULTRAPAR HOLDINGS INC's quality score of 90/100 places it among the top profitability performers in the market. The quality factor evaluates margins, return on equity, return on assets, and earnings consistency — the fundamental building blocks of a durable business.
Return on equity of 29.5% exceeds the sector median of 12.0%. Gross margins of 7.3% suggest a commodity-like business with thin pricing power. Operating margins of 3.8% sit below the 15.0% sector average.
Net margins of 1.9% are positive but thin, leaving limited margin for error.
Valuation Assessment
A value score of 95/100 puts UGP in the top 5 percent of all stocks on cheapness — suggesting the market is significantly underpricing the company's fundamentals. Key valuation metrics include a P/E ratio of 7.3x, an EV/EBITDA of 2.2x, a price-to-book of 1.1x, a price-to-sales of 0.1x. Deep value scores like this historically correlate with above-average forward returns, though they can also reflect legitimate concerns about business quality that the value factor does not capture.
Momentum & Timing
ULTRAPAR HOLDINGS INC's momentum score of 83/100 places it among the strongest trending stocks in the market. The stock has been outperforming roughly 83 percent of all other companies over the relevant measurement window. The academic literature, starting with Jegadeesh and Titman's seminal 1993 research, demonstrates that stocks with this kind of relative strength tend to continue outperforming for three to twelve months.
Revenue growth of -16.9% is declining, which makes the momentum signal more precarious. A beta of 0.39 means ULTRAPAR HOLDINGS INC moves with less volatility than the market, which can be attractive for risk-conscious investors.
Our entry timing model currently signals Favorable, which warrants caution despite the price trend.
Risk Factors
No investment comes without risks, and honest analysis requires flagging them clearly:
- Thin margins. Operating margins of 3.8% leave little room for error. A modest revenue shortfall or cost increase could push the company into unprofitability.
- Model limitations. Quantitative models measure what is measurable — financial ratios, price trends, leverage — but cannot capture qualitative factors like management quality, competitive positioning, or pending litigation. This analysis should be supplemented with fundamental due diligence.
- Market regime risk. Factor-based strategies perform differently across market regimes. The current factor exposures that support ULTRAPAR HOLDINGS INC's rating may become headwinds if the macro environment shifts — for example, if interest rates move sharply or if sector rotation accelerates.
Bottom Line
ULTRAPAR HOLDINGS INC earns a Strong Buy rating with a composite score of 79/100 and 5 out of 5 stars, ranking #1 out of 7,333 stocks. The quantitative profile is among the strongest in the market — not because of any single factor, but because of consistent strength across multiple dimensions.
Stocks with this multi-factor profile have historically delivered above-average risk-adjusted returns over three to twelve month horizons. Whether that pattern holds for UGP specifically is, of course, uncertain — quantitative models identify probabilities, not certainties.
Explore the full UGP analysis page for interactive factor breakdowns, DCF valuation, and risk analytics, or view the complete stock rankings.
Disclaimer: This article is generated by Blank Capital Research's quantitative model and is provided for informational purposes only. It does not constitute investment advice, a recommendation, or a solicitation to buy or sell any security. Past performance is not indicative of future results. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
